GGRAsia – Emperor Ent sees revenue fall 10 pct in fiscal 1H

Emperor Ent sees revenue fall 10 pct in fiscal 1H

Nov 18, 2016 Newsdesk Latest News, Macau, Top of the deck

Emperor Entertainment Hotel Ltd, owner and operator of Macau casino property Grand Emperor Hotel (pictured), reported a 10.2 percent year-on-year decrease in revenue for the six months ended September 30, to HKD784.5 million (US$101.1 million). “The group’s performance was impacted by challenging conditions in Macau’s gaming market,” the firm said in a filing on Wednesday.

The Hong Kong-listed firm recorded gaming revenue of HKD657.6 million for the period, a decrease of 11.1 percent from the prior-year period. Gaming revenue accounted for 83.8 percent of the group’s total revenue in the six months to September 30.

The casino at the Grand Emperor Hotel is operated under the gaming licence of SJM Holdings Ltd. As of September 30, the venue had 67 mass-market tables; 196 slot machine seats; and a self-managed VIP gaming room with 10 tables.

In its fiscal first half, rolling chip amount in the self-managed VIP room increased by 29.4 percent year-on-year to HKD13.2 billion. Despite the increase in rolling chip turnover, revenue from the VIP room fell by 7.8 percent to HKD232.6 million, Emperor Entertainment reported.

The company reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of HKD180.0 million for the six-month period, down by 34.3 percent from a year earlier. The group also operates a Macau hotel with no gaming; the 287-room Inn Hotel Macau – formerly known as Best Western Hotel Taipa.

Emperor Entertainment said both the exchange loss and decrease in the valuation of the hotel properties “was greatly diminished” in the six months to September 30. As a result, net profit “only decreased” by 5.7 percent year-on-year to HKD105.1 million, the firm said.

The board recommended an interim dividend of HKD0.025 per share, amounting to HKD32.6 million. The interim dividend will be paid on December 15 to shareholders registered as of December 9, the firm said.

Emperor Entertainment had said in June that its profit for the fiscal year to March 31, 2016 fell 49.2 percent year-on-year, to HKD256.2 million.